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<p>[QUOTE=&quot;Cloudsweeper99, post: 705881, member: 3011&quot;]This is misleading.&nbsp; There is no advantage to a GOLD-BACKED currency, as you state.&nbsp; It is a fraud and excuse for confiscating gold.&nbsp; But what this overlooks is that GOLD IS MONEY.&nbsp; If you permit gold [and silver] coins to freely circulate as money, and reopen the Mint to the free coinage of gold and silver, and permit any paper bank currency to be freely converted to gold and silver with a prohibition against fractional reserve banking, the problem disappears.&nbsp; </p><p><br /></p><p>Also, economic growth isn&#039;t restricted at all, just as it was not in the days prior to the Federal Reserve Note.&nbsp; Your perceived constraints are a restatement of the old quantity theory of money.&nbsp; In practice, the free market resolved those constraints through the self-liquidating bill market which permitted a huge amount of trade to take place with a relatively small number of circulating gold coins and very little movement of gold between countries.&nbsp; Of course, under this sort of system there is no inflation other than from massive new gold discoveries.&nbsp; Instead, there would probably be a slight deflation equal to the growth in productivity.&nbsp; So instead of your savings losing purchasing power, they would gain.&nbsp; All of this is documented history.&nbsp; Professor Antal Fekete has written extensively on how the gold system used to work and how it would work if instituted again.&nbsp; Many people think they know, but few have ever deeply studied the gold-as-money mechanism.</p><p><br /></p><p>Of course, it will never happen so it doesn&#039;t really matter.&nbsp; The universities make sure all students of economics graduate with a disdain for gold.[/QUOTE]</p><p><br /></p>

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